11 hours ago | October 23rd, 2014 22:51:16 GMT

“Japan’s Life Insurers May Go Cool on Foreign Debt”


An interesting article in the Wall Street Journal: Japan’s Life Insurers May Go Cool on Foreign Debt (gated)

In brief:

  • Bank of Japan’s aggressive efforts to aid the economy have kept yields at extremely low levels at home, making foreign debt look more attractive
  • In the first nine months of the year, Japanese insurers bought foreign bonds at the fastest pace in a decade
  • But uncertainty over the outlook for the global economy has weighed on yields around the world, a factor that looks set to crimp buying for the time being
  • “Yields are very low [globally]. That is having a direct impact on our investing,” said Toshihiko Yamashita, chief executive of the investment division at Meiji Yasuda Life Insurance Co., Japan’s second-largest life insurer by assets.


12 hours ago | October 23rd, 2014 22:06:05 GMT

Yen’s sharp decline against the yuan pressuring some Japanese companies in China


From the Wall Street Journal (gated):

  • The yen’s sharp decline against the yuan is clobbering some Japanese companies operating in China
  • The companies affected are those that pay wages and operating costs in yuan but earn revenue in yen by selling products or services in Japan
  • The currency blow has been aggravated by skyrocketing labor costs in China, which nearly doubled in five years

It also makes note of the declining Japanese investment in China:

japan investment china

More: Weak Yen Pressures Japanese Firms Operating in China


12 hours ago | October 23rd, 2014 21:45:13 GMT

New Zealand Trade balance: -1350m (vs. expected -625m)


New Zealand September trade balance data.

Trade balance, -1350m

  • expected -625m, prior was -472m

Exports, 3.61bn

  • expected 3.50bn, prior was 3.52bn

Imports,  4.97bn

  • expected 4.20bn, prior was 4.00bn


New Zealand hoovering in the imports!

From Statistics New Zealand (bolding mine):

  • The seasonally adjusted value of exported goods fell 3.0 percent, to $12 billion, in the September 2014 quarter
  • Imports rose 3.7 percent, to $13 billion
  • The fall in exports in the latest quarter follows a 7.5 percent fall in the June 2014 quarter
  • Falls for both quarters were led by milk powder, butter, and cheese; and logs, wood, and wood articles
  • “This is the first quarter since September 2013 where exports to Australia were greater than to China,” international statistics manager Jason Attewell said. “China’s rise to being our number one export market coincided with record dairy exports (driven by both prices and volumes) in the year to the September 2014 quarter.”
  • The rise in imports was led by capital goods, mainly influenced by imports of large aircraft in the September 2014 quarter.
  • Excluding these aircraft, seasonally adjusted imports showed little change, at 0.2 percent.
  • The seasonally adjusted trade balance for the September 2014 quarter was a deficit of $1.0 billion, equivalent to 8.6 percent of exports.
  • For the September 2014 month, import values increased $927 million (23 percent) compared with September 2013, while exports fell $203 million (5.3 percent)
  • The trade balance for the September 2014 month was a deficit of $1.4 billion (37 percent of exports).


12 hours ago | October 23rd, 2014 21:35:29 GMT

So, what would you do if you were given $US8.83 billion? These guys bought an iPad.


From Bloomberg:

New York City police are being issued hand-held devices connected to crime and terrorism databases under a program funded in part by the $8.83 billion legal settlement with France’s BNP Paribas which this year pleaded guilty to violating U.S. anti-terrorism sanctions.

  • The department will equip 6,000 squad cars with break-resistant tablets
  • And each officer will receive a smartphone
  • Part of a $160 million program paid for in part from the settlement

More at Bloomberg: NYC Police to Get Tablets Paid for With Funds From BNP



1 Comment

12 hours ago | October 23rd, 2014 21:24:43 GMT

EU demands extra €2.1bn from Britain – on account of its relative prosperity


A report in the the Financial Times (gated, but can be read with a free registration): EU tells Britain to pay extra €2.1bn

  • Britain has been told to pay an extra €2.1bn to the EU budget within weeks on account of its relative prosperity
  • “A hefty surcharge”
  • To compensate for its economy performing better than other EU countries since 1995, the UK will have to make a top-up payment on December 1
  • France, meanwhile, will receive a €1bn rebate, according to Brussels calculations seen by the Financial Times

This should be fun. Tell me again, when does Britain leave the EU?


13 hours ago | October 23rd, 2014 20:51:28 GMT

Irish bank to fail ECB stress test?


Bloomberg reports that “according to a person with knowledge of the matter”, Ireland’s smallest state-owned bank, Permanent TSB, failed European Central Bank stress tests under the adverse scenario being assessed by regulators

The report goes on to say:

  • The bank faces a capital shortfall between 700 million and 800 million euros under an extreme case
  • The shortfall would be the first Irish failure in Europe’s banking stress tests

More at Bloomberg


13 hours ago | October 23rd, 2014 20:42:33 GMT

The TGIF trade ideas thread


Good morning/evening/afternoon – welcome to Friday!

Any trade ideas, thoughts, views, ForexLive traders would like to share and discuss with fellow ForexLive traders, please do so:

1 Comment

13 hours ago | October 23rd, 2014 20:30:53 GMT

Economic data due from New Zealand today – trade balance due soon


Due at 2145GMT from New Zealand is the September trade balance data.

  • Trade balance, expected is -625m, prior was -472m
  • Exports, expected is 3.50bn, prior was 3.52bn
  • Imports, expected is 4.20bn, prior was 4.00bn

For the NZD/USd – 0.7875 is now resistance, but selling is coming in well ahead of that level at 0.7840/50 initially. Support …. well if you must be a buyer there is support initially around 0.7800 (and there are decent buy orders around there to be done)  then a band from 0.7710 through 0.7750.



13 hours ago | October 23rd, 2014 20:25:11 GMT

ForexLive Americas wrap: Ebola stops risk rally


Forex news for October 23, 2014:

The euro got a lift from better PMIs in European trading but wasn’t able to continue to the upside. The top for the pair was 1.2677 just as US traders began arriving at their desks and it was a sideways/lower chop from there. Last at 1.2650 which is about right in the middle of the US range.

The action was in the yen crosses as better risk appetite and a report that the BOJ is giving up on its inflation targets that sent the yen spiraling. USD/JPY broke above the session high of 107.63 on the headlines and then continued all the way to 108.35 before ebola in NY fears sent it back down to 108.05. It’s in a delicate spot at the moment as the market weighs whether or not it cares about ebola.

Cable was in a 50-pip range from 1.6000 to 1.6050 and finishes right in the middle of it.

The volatility in USD/CAD wasn’t anywhere near the levels of yesterday although it took a quick dip down to 1.1208 before bouncing right back to 1.1240 early in US trading. It wasn’t able to get up to the 1.1260 levels from Asia-Pac trading and was generally tracking lower late in the day on better risk appetite.

Yet AUD and NZD continue to show no signs of bouncing on better vibes in stock markets. The kiwi was smashed by the CPI report yesterday and finishes near the lows of the day at 0.7822. The Aussie tried the upside in early US trading, touching 0.8806 but then sagged back to 0.8757 later, just above the Asian lows.

Gold took a hit down to $1225 as dissipating global fears and the end of Diwali sparked some selling but it bounced later on ebola buying.

Crude liked the Saudi headlines and that protected $80 in WTI and might be a very early sign of a bottom in crude.

FX ticker

daily changes

1 Comment

13 hours ago | October 23rd, 2014 20:22:53 GMT

Overnight press: BOJ Sees Bigger Chance of Fall in CPI Below 1%


Ryan had the story in the Wall Street Journal overnight here: Bank of Japan sees greater risk of inflation falling below 1% – WSJ:

  • BOJ now sees a much bigger possibility of inflation slipping below 1%, pushed down by falling crude oil prices, according to people familiar with the central bank’s thinking
  • BOJ recognizes that lower oil prices are ultimately good for the economy as they reduce living costs from imported food to gasoline, (but) is concerned about their effect over the shorter term.

Link to the (ungated) Journal article


The next BOJ policy meeting is on October 31. Current thinking is ‘no change’ from them, despite this talk about concern on the lower oil price and its impact on inflation.

(Gotta say… I reckon the BOJ is more concerned with core inflation rather than the volatile CPI with energy included. Just like other central banks.)

1 Comment

1 2 3 4 5 6 7 8 9 10

About Forexlive

Founded in 2008, ForexLive.com is the premier forex trading news site offering interesting commentary, opinion and analysis for true FX trading professionals. Get the latest breaking foreign exchange trade news and current updates from active traders daily. ForexLive.com blog posts feature leading edge technical analysis charting tips, forex analysis, and currency pair trading tutorials. Find out how to take advantage of swings in global foreign exchange markets and see our real-time forex news analysis and reactions to central bank news, economic indicators and world events.

Our authors have years of experience in financial markets and provide diverse, thought-provoking updates relating to news about global macro events and the worldwide forex economic calendar, with frequently updated content that is educational for traders at all levels from beginner to novice that can help traders make better decisions about forex trading. Our forex news focuses on G10 events, macroeconomic indicators, major equities indexes, treasury and bond yields from around the world, politics as it relates to forex trading and news from the FOMC as well as global central banks in, Europe and Asia.

Learn More About The Forex Live Authors Here and Follow us on Twitter, Facebook & Google+


© Copyright 2014 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.